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(Source : news.gov.hk)

Legislative Council passes Revenue (No. 2) Bill 2007

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The Legislative Council passed the Revenue (No. 2) Bill 2007 today (May 23). The Bill seeks to implement the tax relief measures in respect of salaries tax and tax under personal assessment announced in the 2007-08 Budget. The measures will be effected by amending the Inland Revenue Ordinance.

The first measure is to revert the marginal tax bands and tax rates of salaries tax to their 2002-03 levels. Each marginal tax band will be widened from $30,000 to $35,000, and the highest two marginal tax rates will be reduced from 13% and 19% to 12% and 17% respectively.

The second measure is to increase the child allowance under salaries tax from $40,000 to $50,000 for each child and introduce an additional child allowance of $50,000 in the year of assessment in which the child was born.

The third measure is to increase the maximum amount of salaries tax deduction for self-education expenses from $40,000 to $60,000.

The fourth measure is to reduce the salaries tax and tax under personal assessment for 2006-07 by 50%, subject to a ceiling of $15,000. The reduction will be reflected in the taxpayer's final tax payable for 2006-07.

Reducing 50% of salaries tax and tax under personal assessment assessed for 2006-07 will cost the Government about $8.1 billion in 2007-08. Other measures in respect of salaries tax and tax under personal assessment will cost the Government about $4.9 billion in a full year.

 

Ends/Wednesday, May 23, 2007
Issued at HKT 16:58

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